LSAT 149 | Section 3 | Logical Reasoning: Q11

LR Question 11 Explanation

QUESTION TEXT: Gabriella: By raising interest rates, the government…

QUESTION TYPE: Point at Issue

ARGUMENTS: Gabriella says that the government slowed the economy by raising interest rates. Higher interest rates make people borrow less and spend less.

Ivan argues that the global economy has slowed, and that this wholly caused the economic slowdown.

ANALYSIS: This is a subtle argument. Gabriella doesn’t mention the global economy. She might agree that it has also slowed, and even that it has slowed the local economy. So Gabriella might think that both interest rates and the global economy caused a slowdown.

Ivan’s opinion is more definite. He gives all the blame to the global economic slowdown. So he disagrees that interest rates share any blame.

___________

1. This gets things backwards. Gabriella said less spending leads to an economic slowdown. But neither person said whether an economic slowdown reduces spending.
2. Ivan says yes. We don’t know Gabriella’s opinion. Her views on interest rates don’t imply any particular views about the global economy.
3. Ivan didn’t express any view on borrowing. He only disagreed with Gabriella’s views on what caused economic slowdown. He might think borrowing slowed, but that that didn’t cause any economic slowdown.
4. CORRECT. Gabriella says yes. Ivan says “the government’s action” didn’t cause the slowdown. And that action was raising interest rates.
5. Ivan says yes. We don’t know what Gabriella thinks. She might agree that the global economy slowed, but that a rise in interest rates also slowed the local economy.

Recap: The question begins with “Gabriella: By raising interest rates, the government”. It is a Point at Issue question. Learn how to master LSAT Point at Issue questions on the LSAT Logical Reasoning question types page.